Marico buys Nihar from HLL for Rs 100 cr

Marico today announced the acquisition of the Nihar hair oil brand from Hindustan Lever for over Rs 100 crore. Nihar has an annualised turnover of about Rs 120 crore spread over two segments: coconut oil and perfumed hair oil.

Hindustan Lever put the oil brand up for sale 13 years after buying it as part of the Tomco acquisition from the Tatas. A string of fast-moving consumer goods companies led by Dabur, Emami and Wipro were contending for the brand.

Marico, one of the largest players in the coconut oil segment, will benefit from Nihar's substantial presence in Bihar and Jharkhand and from its 74 per cent penetration of rural markets. In perfumed coconut oils, Nihar Naturals (Jasmine and Rose) are the national market leader, a company release said.

The transaction will involve transfer of intellectual property and other rights associated with the brand. Hindustan Lever will continue to operate brands other than Nihar in the value-added hair oil segment.

Marico Chairman and Managing Director Harsh Mariwala said: "Nihar complements Marico's strengths in coconut oil and perfumed hair oils. We see significant scope for value creation leveraging Nihar's equity. This will help our organic growth as we move towards our target of reaching Rs 2,000 crore in turnover in the next three years."

Marico markets 15 brands, including Parachute, Saffola, Kaya, Sundari, Hair & Care, Shanti and Mediker. Earlier this month, Marico had acquired a local soap brand, Manjal, in Kerala.

Hindustan Lever Vice-Chairman M K Sharma said, "This is in line with our portfolio rationalisation strategy, while at the same time creating value for our shareholders."

Ambit Corporate Finance acted as Marico's advisers in this transaction.